Voxtra East Africa Agribusiness Fund invests growth capital in commercially viable but capital-constrained agribusinesses that reach out to smallholder farmers.
The Fund had its first closing on November 2011, at NOK 65 million (approximately USD 12 million). A second closing is considered for 2012. Norfund is the anchor investor with a 35% share. Other shareholders include Grieg International and Kavlifondet, as well as private individuals in Scandinavia.
The Fund will invest in 8-10 small and growing enterprises in East Africa that provide improved inputs, processing capacity or market access to smallholder farmers. With a backdrop of high growth rates and increased political stability, Voxtra finds the region’s agribusiness sector both an attractive investment area and an effective means of addressing serious shortcomings in smallholder farmer livelihoods. Voxtra’s investments are expected to significantly strengthen the incomes and food security of more than 200,000 smallholder farmers.
Norad, the Norwegian agency for international development, has committed NOK 9 million (approximately USD 1.6 million) in funding for a facility that can provide technical assistance to the portfolio companies of the Fund.